Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q3 2024 Earnings Presentation
26 slides from Equity Bancshares's earnings presentation, Oct 16, 2024
Slide 1: Earnings Presentation 3rd Quarter 2024
Exhibit 99.2 Earnings Presentation 3rd Quarter 2024 October 16, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of the manage
Slide 3: Company Overview
Equity Bancshares, Inc.| NYSE: EQBK Company Overview $5.4B $3.6B $4.4B $604M Assets Loans Deposits Market Cap 1 8.21% 11.37% 14.78% WICHITA TCE/TA 2 CET 1 TRBC Headquarters 3 Strategic Execution Of Acquisitions $5.4B 27.3% Compound Annual Growth Rate3 $1.6B $380M SCALE 12 START-UP GROWTH Completed B
Slide 4: Leadership Team
Leadership Team Brad Elliott Rick Sems Equity Bancshares, Inc. Chairman & CEO Equity Bank CEO Years in Banking: 35 Years in Banking: 24 Founded Equity Bank in 2002 Announced as Equity Bank CEO in May 2024. Joined Equity Bank as 2018 EY Entrepreneur of the Year National Finalist President in May 2023
Slide 5: Our Value Proposition
Our Value Proposition Organic Growth Our guiding principles Strategic Mergers & Acquisitions and commitment to our 5 entrepreneurial spirit Disciplined Credit Standards are part of our longstanding framework for delivering Effective Balance Sheet & Capital Management shareholder value EPS & Tangible
Slide 6: Tangible Book Value Per Share
Tangible Book Value Per Share 1 $ 31.00 TBVPS Ex. AOCI AOCI Impact $28.38 7.65 % TBVPS CAGR Ex. AOCI 6 $ 16.26 $15.97 2015 2024 1) Tangible Book Value per common share. Non-GAAP Measure. For a reconciliation of Non-GAAP measures, please see appendix.
Slide 7: 3rd Quarter 2024 Financial Highlights
3rd Quarter 2024 | Financial Highlights HIGHLIGHTS EARNINGS & PROFITABILITY Q3 24 Q2 24 Q3 23 $20.2M Earnings Per Share | Adjusted Earnings Per Share1 Book Value Per Share | TBV Per Share1 $1.28 / $1.311 $32.97 / $28.381 $0.76 / $0.991 $25.701 $0.80 / $0.801 $23.091 Adjusted Operating Net Income | A
Slide 8: Performance Metrics
Performance Metrics Adjusted Return On Tangible Common Equity 1 Adjusted Return on Average Assets 1 1.54% 20.23% 16.97% 17.04% 1.25% 1.18% 14.19% 13.76% 0.97% 0.97% 8 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Efficiency Ratio 1 TCE / TA Excluding AOCI 1 74.35% 6
Slide 9: Net Income
Net Income Primary Drivers Net Interest Income Noninterest Income Noninterest Expense Net interest income totaled $46.0 million in the Noninterest income totaled $9.3 million in the Noninterest expense totaled $30.3 million in the third quarter, down $445 thousand from the third quarter, driven by s
Slide 10: Profitability
Profitability Revenue Composition 1 Profitability Ratios 1 Noninterest Income / Operating Revenue Net Interest Income Noninterest Income 20.92% 17.56% 16.52% 15.44% 16.24% $8,985 $9,111 $11,668 $8,736 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $7,204 Noninterest Income / Average Assets 10 0.91% 0.69% 0
Slide 11: Net Interest Income
Net Interest Income Primary Drivers Deposits Cost of Deposits Loan Yield Investment Yield Borrowings Excess Liquidity Noninterest-bearing Cost of total deposits Loan yield decreased Declined during the Borrowing balances Excess on balance deposits constitute increased 6bps and 4bps quarter-over- per
Slide 12: Strong Core Deposit Franchise
Strong Core Deposit Franchise Core Deposits 1 / Total Deposits Non-Interest Core Deposits Brokered Deposits Bearing DDA Interest 22.2% Bearing DDA 3.67% 4.82% 4.58% 4.70% 7.44% 22.9% Time Deposits < Current 100k 4.5% Deposit 96.33% 95.18% 95.42% 95.30% Composition 92.56% Time Deposits > 100k 16.8% M
Slide 13: Yield / Cost Components
Yield / Cost Components Cost Analysis Cumulative Betas Cost of Deposits Cost of IB Deposits Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 Fed Rate Change Since Beginning of 5.18% 5.25% 5.25% 5.25% 5.18% Rate Cycle – Q4 2021 2.77% 2.78% 2.85% 2.40% 2.58% Loans 49% 50% 53% 58% 59% 2.16% 2.14% 2.20% 1.84% 1.
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Mix Total Loans & Yield on Loans 7.11% 6.62% 5.00% 4.77% 4.98% $3.3B $3.3B $3.6B $3.2B $2.6B Com m er cial and industr ia l 19% 2020 2021 2022 2023 Q3 2024 14 Com m er cial r eal estate Resident ia l 41% r eal estate 16% Total Classified Assets Real estate constr uc t
Slide 15: Asset Quality Trends - Quarterly
Asset Quality Trends - Quarterly Nonperforming Assets 1, 2 Total Reserve Ratio Nonaccruals OREO & Other Repo. Assets NPAs / Assets Allowance for Credit Losses Purchase Discount 0.53% 0.49% 0.52% 0.60% 1.39% 1.35% 1.33% 0.42% 1.30% 1.26% $1.1 0.04% 0.04% 0.05% 0.04% 0.05% $1.2 $0.8 $0.6 $0.3 1.35% 1.
Slide 16: Asset Quality Trends – Annual
Asset Quality Trends – Annual Nonperforming Assets 1, 2 Total Reserve Ratio Nonaccruals OREO & Other Repo. Assets NPAs / Assets Allowance for Credit Losses Purchase Discount 1.36% 1.98% 1.28% 1.65% 0.68% 1.43% $10.8 $36.4 1.35% 0.53% 0.60% 0.12% 1.26% 0.37% 0.05% 0.04% $1.1 0.05% $1.2 $0.6 1.53% $43
Slide 17: Tangible Book Value
Tangible Book Value INCREASED $2.68 IN Q3 2024 TO $28.38 $2.62 $31.00 $1.44 $28.38 $1.30 $0.04 $0.00 $0.05 $25.70 ($0.15) 17 Q2 Q3 Q3 Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation.
Slide 18: Capital Management
Capital Management THE COMPANY’S CAPITAL RATIOS ARE WELL CAPITALIZED LEVELS AS OF 9/30/2024 EQBK Well Capitalized CAPITAL PRIORITIES Maintain well capitalized regulatory levels 14.78% Capacity for organic growth 11.94% 11.37% 10.50% 8.50% 9.55% Merger & acquisitions 8.21% 7.00% Dividend payout ratio
Slide 19: Outlook on Key Business Drivers
Outlook on Key Business Drivers 3 RD QUARTER 2024 FORWARD LOOKING RESULTS ESTIMATES 4 th QUARTER 2024 FY 2025E Avg. $4,260M $4,325 – 4,375M $4,300 – 4,350M $4,400 - 4,500M Deposits Avg. $3,463M $3,450 - 3,500M $3,600 - 3,650M $3,700 - 3,850M Loans Avg. $4,740M $4,750 - 4,800M $4,775 - 4,850M $4,850
Slide 20: Focus Variables for Outlook & Forecast
Focus Variables for Outlook & Forecast OUR OUTLOOK REQUIRES CLARITY AROUND CERTAIN VARIABLES, INCLUDING: ECONOMIC CUSTOMER COST OF COMPETITIVE INVESTMENT POLITICAL ENVIRONMENT NEEDS FUNDING MARKET OPPORTUNITIES ENVIRONMENT Business activity Directly related to Impacts rates on our Providing customer
Slide 21: Our Markets
Our Markets Kansas Missouri Market Rank #8 Market Rank #7 Deposits $2.5B Deposits $1.1B Deposit Market Share 4.10% Deposit Market Share 1.91% 21 Oklahoma Arkansas Market Rank #15 Market Rank #9 Deposits $536M Deposits $317M Deposit Market Share 1.63% Deposit Market Share 2.72% Source: S&P Capital IQ
Slide 22: Non-GAAP Reconciliations
; EQUITY Non-GAAP | 2 BANCSHARES, INC. Reconciliations
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF TANGIBLE COMMON EQUITY AND RELATED MEASURES ($ in thousands, except per share data) Quarter Ended September 30, June 30, March 31, December 31, September 30, 2024 2024 2024 2023 2023 Total stockholder's equity $504,038 $461,435 $456,776 $452,860 $418,130 Less
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF ROATCE AND EFFICIENCY RATIO ($ in thousands, except per share data) Quarter Ended September 30, June 30, March 31, December 31, September 30, 2024 2024 2024 2023 2023 Total average stockholders' equity $485,468 $455,322 $460,244 $423,207 $426,260 Less: averag
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF RETURN ON AVERAGE ASSETS, AVERAGE EQUITY AND OPERATING NET INCOME ($ in thousands, except per share data) Quarter Ended September 30, June 30, March 31, December 31, September 30, 2024 2024 2024 2023 2023 Net income (loss) allocable to common stockholders 19,
Slide 26: investor.equitybank.com
| EQUITY BANCSHARES, INC. investor.equitybank.com